Managing International Environment | Food Industry

Managing
Internatio
nal
environm
ent

Running Head: FOOD INDUSTRY 1
Contents
Introduction............................................................................................................... 2
Pestle analysis of Singapore (Southeast Asia).....................................................................2
Modes of entry to enter into new national market.................................................................6
Licensing agreement.......................................................................................... 6
Greenfield Investment........................................................................................ 7
Recommendation for choosing best entry mode...................................................................7
Conclusion................................................................................................................ 8
References................................................................................................................ 9

Running Head: FOOD INDUSTRY 2
Introduction
It is true that Singapore food market has a pool of different cultures. Due to different cultural
beliefs, Singapore food market has given the rise to multi-cuisine restaurants. Based on the
recent data published by Euromonitor, it is seen that the market is also expected to grow by
2.4% by the year 2023. The growth in customers has also given the rise to many stalls. It is
seen that Singapore enjoys one of the nethermost incidences of food-borne disease outbreaks
as compare to the whole world. Due to this, is can be seen that new entrant is required to
assure of the quality.
Leon Flagship is a fast food restaurant based in United Kingdom. It was founded by Henry
Dimbleby and John Vencent. In 2004, Leon Flagship has opened its first outlet in the
Carnaby street. The CEO and Co founder of Leon Flagship named John Vincent stated that
airport is one such place where people still have to struggle for eating well. Due to this, it
wants to open its outlets in such places where it can help the people with its healthy food. In
order to hire the staff, it has been stated that companies are required to adhere with some food
hygiene certifications. In the paper, discussion has been carried on the PESTLE analysis of
Singapore where Leon Flagship is suggested to expand. Afterwards, two entry modes has
been discussed by choosing one suitable entry mode for Leon Flagship to entre in Singapore.
Pestle analysis of Singapore (Southeast Asia)
Political factors: Political factors include the government laws, rules, and policies that
directly affect the working of any company in that country. It is seen that government of
Singapore is about to ban the source of artificial trans fats. This includes every pre-packaged
food such as instant noodles, potato chips, and cookies. In this way, government is giving
more emphasis on encouraging the healthier food among Singapore people. At the time of
moving in Singapore market, Leon Flagship can give more emphasis on the healthy food.
Moreover, Singapore new food regulator is coming which will ensure the food security
through development of national strategies. In this way, government is working toward food
industry by strengthening the food security in Singapore and reducing its vulnerability to
ensure the prices of food item at affordable rates. The corruption level between local
authorities against some of the international entities might negatively affect the investment of
Leon Flagship restaurant in Singapore.

Running Head: FOOD INDUSTRY 3
Economic factors: Singapore is seen as the biggest economic independence that is quite
stable in nature. It has been found that globalisation has created several opportunities for food
industries. Singapore is found to be the beneficiary by helping food businesses. In Singapore,
middle class wages are growing continuously. In Singapore, Globalisation has also improved
the lives of millions of people. Due to the increasing US-China trade war, protectionism and
Brexit, companies are required to give emphasis on the skills and jobs for Singaporeans. The
fluctuation between the Singapore dollars and its country might cause the investment of Leon
Flagship to cost higher. The volatile food industry also get affected by the higher prices due
to raw material scarcity and inflation which will cause the increase in prices and cause the
consumer to consume their meals from other restaurants (Wallace, Sperber and Mortimore,
2018).
It is found that household income has increased significantly in the last few decades, as there
are many western and educated consumers. Singapore has also effectively managed to attract
the expatriates in order to ensure the establishment of second home. Most of the foreign come
from the western countries who definitely search for good food. In addition to this, number of
tourist has also increased who are becoming health conscious. Due to thus, demand of
organic food is seen the country. Government is working toward food industry by
strengthening the food security in Singapore and reducing its vulnerability to ensure the
prices of food item at affordable rates
Social factors: the food market in Singapore is changing by the time. People are more looking
for the healthy options and increasing their awareness about the packaged food. These trends
are driving the food restaurants to bring innovation in their products. In spite of the limited
agriculture output and small land mass, local food industry is booming in Singapore.
Singapore chicken rice, Chilli crab, satay, dim sum and rending have become every well
known across the world. The encouraging and stead growth of the food industry in Singapore
can prove to be advantageous for Leon Flagship. As per the “Health Promotion Board,”
several companies have applied for healthy ingredient scheme that provides the grant and
support to the food companies in promoting and developing the healthy ingredients. Food
companies of all sizes are able to see the social and business value in innovation. Sugar
alternatives, plant-based proteins, as well as texture modified food are some of the trends that
is going huge popularity due to the increasing pressure for addressing health priorities. By
keeping this in mind, Leon Flagship can work on lowering the glycaemic index fibre in its
meal.